Nearshore Americas

BPO Market Shows Powerful Rebound in Brazil and Mexico

Expect the growing U.S. recovery to drive a rebound in business process outsourcing, says a new report on the BPO market.

The economic crisis forced many major U.S. outsourcing projects into a holding pattern as companies canceled or delayed decisions. With global growth back, the BPO market is set to exceed $930 billion by 2015, according to Global Industry Analysts in San Jose, Calif.

The fastest growth will be in emerging markets, including Brazil, Russia, India. and China. Latin America, particularly BPO providers in Mexico, will be well positioned thanks to culture and language skills, the report said.

In addition, new emphasis will be placed on “non-voice,” higher value services, such as finance and accounting, business intelligence, and customer relationship management. Utilities and healthcare are likely to lead the rebound, outpacing government and financial services, according to the report.

Management consultancy A.T. Kearney recently raised Mexico on its Global Services Location Index five slots to the No. 6 position. The consultant ranks 50 countries on a variety of factors, including financial, skills, workforce supply, and business environment.

Mexico rose in the ranking in part because wages there fell during the crisis, said an A.T. Kearney consultant — down 18 percent in dollar terms — but also because of technological readiness.

“They suffered economically as result of global financial crisis,” A.T. Kearney’s Samantha King told NetworkWorld. “Also on the skills side, Mexico has one of the largest number of CMM-I [Capability Maturity Model-Integration] certifications in the world. The government has sponsored the services sector and has done a tremendous job of increasing capabilities.”

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Kirk Laughlin

Kirk Laughlin is an award-winning editor and subject expert in information technology and offshore BPO/ contact center strategies.

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